Consumer spending growth, which had already showed sluggish signs this year, slowed significantly in April as more families waited to see how tariff-related uncertainty might play out. Spending rose 0.2 percent last month, compared with a 0.7 percent increase the month before, according to data released Friday by the Bureau of Economic Analysis.

New orders for key U.S.-manufactured capital goods plunged by the most in six months in April amid mounting uncertainty over the economy because of tariffs, suggesting business spending on equipment weakened at the start of the second quarter.

Households boosted spending in March, especially on cars, to avoid tariff-related price increases. They cut back last month as the tariffs started to kick in.